Vignette Suffers A Difficult First Quarter

Apr 23, 2003 (03:04 PM EDT)

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Content-management software developer Vignette Corp. says it remains on track to return to profitability in the third quarter. Wednesday, the company reported that its losses narrowed in its first quarter, ended March 31, despite a 12% year-over-year decline in revenue.

Vignette reported a loss of $7.5 million, or 3 cents per share, on sales of $40.8 million during the quarter. That compares with a loss of $37.9 million, or 15 cents per share, on sales of $46.4 million in the same period one year ago. Product-license sales declined nearly 20%, to $16.5 million, while service-related revenue fell 6%, to $24.3 million.

Average deal sizes in the first quarter jumped 39% from the fourth quarter, Vignette says. Portal suite software sales exceeded expectations.